Recreational vehicle retailer Camping World Holdings, Inc. (CWH) announced that it has doubled its quarterly cash dividend on the company’s Class A common stock to $0.50 per share. Shares were trading up 7.1% in the pre-market trading session at the time of writing.
The dividend will be paid on September 28 to shareholders of record as of September 14. The company’s annualized dividend has now increased to $2 per share, reflecting a dividend yield of 5.4%.
Commenting on the hike, Marcus Lemonis, Chairman and CEO of Camping World, said, “We are pleased with our strong performance and disciplined cash management and remain focused on our long-term profitable growth and ability to consistently return capital to our stockholders on a go-forward basis, evidenced by the 100% increase in our annualized dividend to $2.00 per share.” (See Camping World stock charts on TipRanks)
On August 3, CWH reported solid second-quarter results. Following the report, Robert W. Baird analyst Craig Kennison upgraded the stock to Buy from Hold while maintaining a price target of $56, implying 50.3% upside potential to current levels.
Kennison was impressed with the company’s ability to post a record Q2 profit despite the inventory shortage and the “extremely tight market.” Notably, the analyst believes that healthy demand will keep inventory “tighter for longer.”
Overall, the stock commands a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average Camping World price target of $52.33 implies 40.5% upside potential to current levels. Shares have gained 14.6% over the past year.